Sabvest Capital warns of falling net asset value due to Covid-19

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Sabvest Capital warns of falling net asset value due to Covid-19
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Pandemic has hit prospects of investments, group says that has stakes in Metrofile and Transaction Capital

Sabvest Capital , which has stakes in Transaction Capital and Metrofile, warned on Monday it expects at least a double-digit fall in net asset value per share in its half-year to end-June, as Covid-19 hits the prospects of its underlying investments.The Covid-19 pandemic in the first half of 2020 has affected most operations of the group’s investee companies worldwide and particularly in SA up to and from the national lockdown starting in March, the group said.

The value of the group’s long-term listed investments dropped an average 26.5% from end-December, with many opting to hold on to dividends to preserve cash. Still, the board “is of the view that the Sabcap portfolio is of high quality, has sufficient resilience to recover values and resume growth when economies rebound, and should revert to being cash generative as previously”, the group said.

Sabcap expects to release its results to end-June in September, saying on Monday it will release a more detailed trading update in the next weeks.

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